The key points
There is always a lot of detail in what the Chancellor provides for us. Here’s a summary of what we think are the key points for our clients.
Business
- Employer’s National Insurance contributions (NIC) on earnings up to the upper earnings limit for apprentices aged under 25 will be abolished from April 2016.
- The rate of the above the line R&D tax credit will increase from 10% to 11% and the rate of the small and medium (SME) scheme will increase from 225% to 230%.
- £400m has been pledged to extend government-backed Enterprise Capital Funds to invest in SMEs and up to £500m of new bank lending to SMEs has been guaranteed.
- The Funding for Lending scheme to boost bank lending to firms will also be extended for another year.
Personal
Increases in allowances and thresholds from April 5th:
- The tax free allowance will be raised to £10, 600.
- The higher rate tax band will be raised to £42,385.
- ISA thresholds will rise from £15,000 to £15,240.
Stamp Duty has been dramatically changed. Further marginal tax rates have been introduced and duty is now payable at the appropriate rate on the amount of the purchase price falling within band.
- Up to £125,000 – no tax.
- Up to £250,000 – 2pc.
- Up to £925,000 – 5pc.
- Up to £1.5m – 10pc.
- Above that – 12pc
Of course we are on-hand to help you make sense of this changes to either your personal or commercial tax affairs.
All you have to do is call us today on 01384 235549 or email info@lewissmith.com.
Lewis Smith & Co. – Do you need an accountant with experience in the manufacturing sector? Call us today.
Image courtesy of Stewart Miles/ FreeDigitalPhotos.net
